Confiscation of Rs.78 Lakh Currency Quashed; Penalties Upheld Under Sections 112, 115, and 123 Customs Act

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....The CESTAT quashed the confiscation of Indian currency totaling Rs.78,00,000/- seized from appellants, holding that the Department failed to prove the currency constituted sale proceeds of smuggled gold, a necessary condition under Section 121 of the Customs Act, 1962. Consequently, the currency was ordered released. Penalties under Sections 112(a)(i) and 112(b)(ii) were upheld against appellants found in possession of gold with foreign markings without valid documentation, as per Section 123. However, penalties on appellants with no seized gold or evidence linking their currency to smuggled goods were set aside. The confiscation of a vehicle under Section 115(2) was also set aside due to lack of evidence of its use in smuggling, and the associated redemption fine was cancelled. The appeal was disposed of accordingly.....